Tuesday, January 26, 2021

Global market Square

By on December 16, 2020

U.S. stocks markets ended the session mostly higher on news Congress is closer to agreeing on a new stimulus bill; moreover, the Fed raised the economic growth forecast for 2021, two critical, positive developments for investors. 

Also Wednesday, some economic benchmarks were reported, including the following:

  • U.S. Retail and Food Services Sales MoM: fell to -1.08%, compared to -0.05% last month, much weaker than anticipated. While online sales continue to thrive, restaurants, department stores and other brick-and-mortar stores reported lackluster sales. 
  • U.S. Business Sales: rose to $1.48 trillion, up from $1.46 trillion last month.
  • U.S. Business Inventories MoM: is lower to 0.72%, compared to 0.78% last month, still higher than the long-term average of 0.26%. 

While some of the economic data may weaker, we believe that distribution of the vaccine represents a positive development that will impact consumer sentiment over the next six months or until we achieve more control of COVID-19 with a high percentage of vaccinations administered nationwide. 

Finally, the proposed stimulus bill is said to surpass $920 billion, or north of 5% of the G.D.P., exemplifying the economic duress’ severity on the U.S. economy. We advise investors to continue to expect high volatility, given all the issues at play.  

Wall Street summary for December 16, 2020,

  • The Dow Jones Industrial Average closed at 30,154.54, down 44.37 points, or 0.15% 
  • The Standard & Poor’s 500 closed at 3,701.17, up 6.54 points, or 0.18%.
  • The Nasdaq Composite Index closed at 12,658.19, up 63.19 points, or 0.50%.
  • The Birling Capital Puerto Rico Stock Index closed at 2,038.23, up 38.58 points, or 1.93%.
  • The U.S. Treasury 10-year note closed at 0.92%
  • The U.S. Treasury 2-year note closed at 0.13%

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